SkyBridge Capital Anthony Scaramucci revealed that he believes that GameStop’s RedStit rally is positive for Bitcoin, as it exemplifies financial decentralization and provides evidence of the concept behind Bitcoin.
According to BloombergScaramucci argued that smartphones and low-cost retail “democratize” the once highly concentrated business of money management. He added: “The activity in GameStop is proof that Bitcoin will work. How are you going to beat that decentralized crowd? For me, that is a confirmation of the decentralized financing. “
Earlier this month dealers from the popular WallStreetBets subreddit piled up in GameStop after activist investor and Chewy Inc Ryan Cohen joined its board of directors to fight back against large short rates that were around 140% of the float. Short bets from companies like Melvin Capital and Citron Research are facing brief pressure.
Melvin CapitalAccording to CNBC, GameStop’s position has suffered a “big loss” and has now closed, even after Citadel and other companies invested more than $ 3 billion in the company.
– Squawk Box (@SquawkCNBC) January 27, 2021
GameStop (NYSE: GME) price has risen from about $ 17.7 at the start of the year to over $ 148 at the end of the market. The stock has since risen to $ 228 in pre-market trading as traders encourage each other to continue betting on the company.
While institutional investors believe the company is doomed due to competition and the COVID-19 pandemic, retail investors believe in “giving it a second chance”.
The price of Bitcoin has risen in recent months, but thanks to increased institutional and corporate interest in the flagship cryptocurrency as more and more companies are using BTC as a hedge against currency depreciation and inflation.
SkyBridge Capital’s bitcoin exposure is “approximately $ 385 million” and the recently launched SkyBridge Bitcoin fund is now approximately $ 60 million. It is believed that the price development of Bitcoin has so far been mainly driven by private investors. Similarly, the price of GME is rising as retail investors battle short institutional selling.
Scaramucci commented: “It’s the age of the small investor and you’d better take it seriously or you’ll be taken to the cleaning staff.”